December 29, 2010
This year was a big one for the payments industry. Startups offered innovative solutions for business owners and consumers to handle ongoing payments woes. Here’s what will come in 2011:
Mobile Payments Extravaganza- With new smartphones and the debut of the iPad this year, payments startups are jumping on the mobile bandwagon and will continue to do so in 2011. Watch for: more and more smartphones offering payments apps, more Square users, and partnerships between different providers such as the PayPal and VeriFone PayWare deal.
Interchange Debates- This month, a controversial new rule was proposed in order to decrease debit interchange rates. Although this rule would benefit business owners who have a high number of debit card transactions, credit card interchange rates may rise to make up for the loss of revenue to big banks. In any case, the rule is open for public discussion until February, so expect this topic to be a hot one for 2011.
Industry Disruptions- Startups will continue to kick industry butt in coming up with innovative and consumer friendly ways of causing paradigm shifts. Think Square vs. Credit Card Processors, WePay vs. PayPal, and inDinero vs. QuickBooks. It will also be interesting to watch further innovations in physical products like the Dynamic Inc next generation power credit cards which could change the way consumers interact with credit cards.
These startups had big years in 2010, so it will be interesting to see what other payments innovations come on their heels.
Have any payments predictions of your own? Leave them in the comments below.
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